United States equity futures were little changed on Wednesday evening (Thursday AEST) after major averages snapped a three-day losing run driven by rising Treasury yields amid renewed fighting between the U.S. and Iran.
By 10 am AEST (12 am GMT), Dow futures, S&P 500 futures and Nasdaq 100 futures were each up 0.1%.
Stocks finished higher in Wednesday's regular session, with all three major averages ending a three-day decline. The Dow Jones Industrial Average rose 0.6%, while the S&P 500 and Nasdaq Composite each gained 0.5%.
Despite concerns about inflation, New York Federal Reserve President John Williams told CNBC on Wednesday that higher Treasury yields reflected strong economic prospects following record corporate profits in the second quarter.
"What's driving it, in large part, is ... really a strong U.S. economy and a strong economic outlook fueled by big investments in AI and data centers and technology in general," he said.
"So, I think it's not really about financial conditions affecting the economy. It's more about the economy affecting financial conditions."
Stocks fell and bond yields rose earlier in the week as fighting between the U.S. and Iran resumed. U.S. officials had indicated a shift from overt military action towards economic sanctions before hostilities escalated again, with the two countries exchanging strikes.
Investors will focus on weekly jobless claims on Thursday, while the main economic event of the week will be Friday's August payrolls report.
In corporate earnings, optical networking company Ciena and consumer staples giant Campbell's are scheduled to report on Thursday morning. Zscaler, Docusign and UiPath are due to release results in the afternoon.
